Essar Oil UK to invest $250 million Stanlow refinery
Mumbai: Essar Oil UK Ltd will invest $250 million in its Stanlow refinery to boost production, the company said on Wednesday. Essar Oil UK owns and operates the Stanlow refinery that produces over 16% of transport fuels in the UK. The company also plans to have 400 petrol pumps in the UK, in five years.
The refinery capacity would be increased from 9.09 million tonnes per annum to 9.7 million tonnes by March 2018, the company said.
“Essar has committed this year to a significant multi-million dollar capex investment in the Tiger Cub project at Stanlow to deliver improved yields across the product slate and drive revenue growth,” chief executive S. Thangapandian said.
The expansion would add $1 per barrel to its refining margin, resulting in $70-75 million revenue, chief financial officer P. Sampath said.
Essar Oil UK reported a 17% drop in March quarter profit to $54 million, on the back of a one-time tax adjustment.
The company earned $9.2 on turning every barrel of crude oil into fuel in the January-March quarter against $6.8 a barrel current price gross refining margin (CP-GRM).
Revenue rose 39.5% to $1.32 billion. For the full year, the company reported a net profit of $168 million on a revenue of $4.92 billion. He said the company has 39 petrol pumps in UK currently and has permission to set up another 14. “Our long-term target is to have 400 fuel retail outlets in five years,” said Thangapandian.